[ by Howard Haykin ]

The SEC charged a Florida-based investment manager and his firm with repeatedly failing to respond to SEC requests for records of a mutual fund advisory business that invested in NASCAR-related stocks.  The SEC examiners sought records from David Dube and Peak Wealth Opportunities LLC while examining the Stock Car Stock Index Fund, a mutual fund they advised. Interestingly, it's not as if the Adviser is completely ignoring the SEC.  According to Bruce Karpati, Chief of Enforcement's Asset Management Unit, "After promising multiple times to provide the requested records, Dube failed to live up to his regulatory obligations and turn over the records." SEC Findings and Allegations. According to an SEC order initiating administrative proceedings, Peak Wealth was the adviser to the Stock Car Stock Index fund from 2008 to June 2010. SEC examination staff requested records from Peak Wealth and Dube in 2010 while examining Peak Wealth’s advisory business and the operations of the fund. It's further alleged that Dube and Peak Wealth:

• Failed to make and keep certain required financial records.
• Failed to withdraw Peak Wealth’s registration with the SEC and make other required filings.
• Failed to provide the fund’s board of directors with information reasonably necessary to assess Peak Wealth’s advisory fees.

Fund Board Also Stonewalled. While the SEC was conducting its exam in 2010, the fund’s Board of Directors also was requesting information from Peak Wealth and Dube - as part of the fund’s required annual evaluation of its advisory agreements.  Yet, even though Peak Wealth and Dube were given extensions, they've yet to produce the requested documents. The board subsequently terminated Peak Wealth’s advisory agreement and liquidated the fund by returning the money to investors. Various options are available to the SEC for dealing with the situation - including barring Dube from the industry. SEC Staff Credits. Investigation by Chad Alan Earnst and Christine Lynch - members of the Asset Management Unit in the SEC’s Miami Regional Office.  Related exam conducted by John Mattimore, Faye Chin, Roda Johnson, Luisa Lipins, and Victor Pedroso. Robert Levenson is leading the SEC’s litigation. For further details, go to:  [SEC PR 12-154, 8/10/12] and [SEC Order - Admin. Proceeding 3-14979].